December 5, 2003

Half of IT suppliers will soon be dead, says Gartner

Half of all technology suppliers will be dead by the end of 2005, according to the latest doom-saying report from Gartner.

There are 50 to 60 per cent too many software companies in the world at the moment said one Ian Bertram, doomsayer-in-chief at the research company.
By 2008, a wave of bankruptcies, mergers and takeovers will see a huge shake-up in the IT market - companies going down the toilet, CEOs begging for
spare change, once-proud white-collar workers in your local Tesco, that sort of thing.

All this trauma will be induced by a massive outsourcing of IT functions (an increase of 30 per cent in the next two years) and a shift to more
modular software, Bertram claims. Companies current software is coming to an end of its usefulness and they will decide to tie main systems into Web
services.

"Software code will be generated for a Web services environment. I can get a new service, and suck that code into my environment, rather than
re-coding or paying for a coder," he warned. This means no more big development projects, rather small groups of developers and business analysts
tacking extra functions onto an existing and flexible framework.

Link: techworld.com

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